| |
|
---------------- |
---------------- |
---------------- |
---------------- |
|
| |
|
1999 |
1998 |
1999 |
1998 |
|
| |
|
Rs.million |
Rs.million |
Rs.million |
Rs.million |
|
| |
|
---------------- |
---------------- |
---------------- |
---------------- |
|
| |
Profit
before tax |
2,325
|
3,461
|
2,325
|
3,482
|
|
|
Adjustments
for: |
|
|
|
|
|
| |
Depreciation
(note 2) |
5,003
|
4,795
|
5,001
|
4,793
|
|
| |
Amortisation
of deferred costs |
40
|
5
|
40
|
5
|
|
| |
Net
foreign exchange gains from operations |
(100)
|
(503)
|
(100)
|
(503)
|
|
| |
(Profit)/loss
on sale of property, plant & equipment |
(380)
|
7
|
(380)
|
7
|
|
| |
Interest
expense and related charges |
3,273
|
1,894
|
3,273
|
1,894
|
|
| |
Interest income |
(103)
|
(90)
|
(103)
|
(90)
|
|
| |
Net connection charges (note 16) |
1,182
|
1,454
|
1,182
|
1,454
|
|
| |
Share
of result before tax of associates (note 9) |
(27)
|
(3)
|
-
|
-
|
|
| |
Changes
in working capital |
|
|
|
|
|
| |
-
trade and other receivables |
15
|
(1,033)
|
15
|
(1,033)
|
|
| |
-
inventories
|
(231)
|
(671)
|
(231)
|
(671)
|
|
| |
- payables
|
(488)
|
1,029
|
(487)
|
1,027
|
|
| |
-
provisions
|
47
|
(317)
|
47
|
(317)
|
|
| |
-
retirement benefits
|
33
|
130
|
33
|
130
|
|
| |
|
---------------- |
---------------- |
---------------- |
---------------- |
|
| |
Cash
generated from operations
|
10,589
|
10,158
|
10,615
|
10,178
|
|
| |
|
---------------- |
---------------- |
---------------- |
---------------- |
|
| |
24.
Capital Commitments
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Capital
expenditure contracted for at the balance sheet
date but not recognised in the financial statementsamounts
to Rs.24,317 million.
|
|
| |
25.
Contingencies
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Contingencies
relating to income and other taxes are disclosed
in note 15. Further, there is uncertainty as to
whether a tax liability would arise on the balancing
charge on some of the assets transferred from
SLT to SLTL. The uncertainty arises because of
a lacuna in Section 3(2) (f) of the Conversion
of Public Corporations or Government Owned Business
Undertakings into Public Companies Act, No. 23
of 1987 which was intended to exempt from tax
any balancing charge arising from the transfer
of fixed assets which have a zero tax written
down value. The law as it currently stands does
not extend the exemption to profit on asset transfers
where the capital allowance claimed is less than
the cost of acquisition.
The
Company has made an appeal against the determination
made by the Telecommunication Regulatory Commission
of Sri Lanka to revise rates charged by the Company
on interconnection services provided to wireless
operators. The balance outstanding from these
operations as at 31 December 1999 is Rs. 357 million.
However, should this appeal fail, the amount of
Rs. 63 million is doubtful of recovery.
The
Company has instituted action against three parities
regarding the provision of international telephone
services outside the “International Gateway” operated
by the Company. Two of those .parties have filed
action against SLTL claiming redress in a sum
amounting to Rs. 587 million on account of loss
of profit resulting from a stay order secured
by SLTL.
The
potential loss, if any, on other pending litigation
is estimated at Rs. 6 million.
There
were no other contingent liabilities of a material
amount.
|
|
|
